MGM Resorts International to Sell Circus Circus Las Vegas For $825M
MGM Resorts International has entered into a definitive agreement to sell Circus Circus Las Vegas for $825 million to an affiliate of Treasure Island owner Phil Ruffin. For the 12 months ending June 30, 2019, the property reported Adjusted Property EBITDA of $62 million.
"MGM Resorts has engaged in an exhaustive process to evaluate its owned real estate and remains committed to executing its asset-light strategy in a measured way that maximizes value for its shareholders," says Jim Murren, Chairman and CEO of MGM Resorts. "The company expects to utilize the proceeds from this transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility."
Ruffin adds, "Circus Circus has anchored the north end of the Las Vegas Strip for over 50 years, and I am excited to add it to my casino portfolio. I have tremendous respect for Jim Murren and the MGM team, and my relationship with them goes back to my friendship with Kirk Kerkorian and continues to this day."
The company acquired Circus Circus Las Vegas in connection with its acquisition of Mandalay Resort Group in 2005. Originally opened in 1968, today the property has 2,300 employees and is home to the Adventuredome (a 5-acre indoor amusement park), a 10-acre RV park, and 37-acre festival grounds.
The transaction is expected to close in the fourth quarter of 2019 subject to customary closing conditions, including receipt of necessary regulatory approvals.